You’re out of free articles.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
As climate world fixated this week on the final wranglings at COP28, the researchers studying our changing planet delivered more bad news about the Arctic.
The National Oceanic and Atmospheric Administration’s 18th annual Arctic Report Card was packed this year with words like “exceptional,” “extreme,” “unprecedented,” and “uncharted,” as one of the harshest places on Earth continues to melt and bloom before our eyes.
Arctic sea ice contracted in 2023 to the sixth-lowest level in the satellite record as the region sweltered under its hottest summer and sixth-hottest year ever documented. Record low May snow cover in North America was followed by the worst season in the history of Canada’s Northwest Territories, where over 16,000 square miles — an area almost twice the size of New Jersey — burned, displacing about two-thirds of residents over the course of the summer. Scandinavia, meanwhile, experienced its wettest August yet, as heavy storms triggered landslides and sent rivers spilling over their banks.
“This year is the year when things are really turning,” Tero Mustonen, an environmental researcher in Finland who contributed to the report, told The New York Times. “The north is now in a place where things will rapidly shift.”
There’s more to the transformation than disappearing glaciers and rising seas, though. Funkier things are happening, too.
Rising ocean temperatures pose a growing risk of melting — and releasing the carbon dioxide and methane trapped in — close to 400,000 square miles of underwater permafrost. Marine algae is thriving in the warmer waters, with its abundance in the Eurasian Arctic rising by 57% over the last two decades and once-rare harmful algal blooms becoming more frequent. Vegetation is also proliferating on land in the tundra, which has seen all eight of its greenest years in the satellite record since 2010 and marked its third-greenest year in 2023.
And while chinook and chum salmon populations crash, devastating Alaskan fisheries, there are more sockeye returning than fishermen know what to do with. In 2022, the number of sockeye in Bristol Bay was nearly double the 30-year mean.
With 2023 now confirmed as the world’s hottest year in modern history, the scientists behind the report also warn that it’s only a matter of time before the unrelenting pace of climate change in the Arctic is felt by the rest of the globe.
“The Arctic is now more relevant to us than it has ever been before,” NOAA administrator Rick Spinrad told NPR. Much of the things happening in the Arctic, he said, are “the kinds of impacts that we're going to see elsewhere in the country” in the not-so-distant future.
“What happens in the Arctic does not stay in the Arctic,” he said.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
The leaders of both countries reached deals with the U.S. in exchange for a 30-day reprieve on border taxes.
U.S. President Donald Trump and Mexican President Claudia Sheinbaum announced a month-long pause on across-the-board 25% tariff on Mexican goods imported into the United States that were to take effect on Tuesday.
In a post on Truth Social, Trump said that Sheinbaum had agreed to deploy 10,000 Mexican troops to the U.S.-Mexico border, “specifically designated to stop the flow of fentanyl, and illegal migrants into our Country.” Secretary of State Marco Rubio, Secretary of the Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick will lead talks in the coming month over what comes next.
“I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries,” Trump wrote.
In her own statement, Sheinbaum said the U.S. had committed to work on preventing the trafficking of firearms into Mexico.
There has still been no pause on planned tariffs on Canadian imports, which would likely affect the flow of oil, minerals, and lumber, as well as possibly break automobile supply chains in the United States. Canadian leaders announced several measures to counter the tariffs at both the federal and provincial level.
Trump and Canadian Prime Minister Justin Trudeau have spoken today, and are scheduled to do so again this afternoon. Canadian officials are not optimistic, however, that they’ll be able to get a similar deal, a Canadian official told The New York Times.
UPDATE 4:55 p.m. ET: Trudeau announced that he had reached a similar deal that would stave off the imposition of tariffs for a month. Following a “good call” with Trump, Trudeau said in a post on X that he would deploy personnel and resources to his country’s southern border. “Nearly 10,000 frontline personnel are and will be working on protecting the border,” Trudeau wrote. He also said that Canada would have a “Fentanyl Czar” and would “launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering.”
PJM is projecting nearly 50% demand growth through the end of the 2030s.
The nation’s largest electricity market expects to be delivering a lot more power through the end of the next decade — even more than it expected last year.
PJM Interconnection, which covers some or all of 13 states (and Washington, D.C.) between Maryland and Illinois, released its latest long-term forecast last week, projecting that its summer peak demand would climb by almost half, from 155,000 megawatts in 2025 to around 230,000 in 2039.
The electricity market attributed the increased demand to “the proliferation of data centers, electrification of buildings and vehicles, and manufacturing,” and noted (not for the first time) that the demand surge comes at the same time many fossil fuel power plants are scheduled to close, especially coal plants. Already, some natural gas and even some coal plants in PJM andelsewhere that were scheduled to close have seen their retirement dates pushed out in order to handle forecast electricity demand.
This is just the latest eye-popping projection of forthcoming electricity demand from PJM and others — last year, PJM forecast summer peak demand of about 180,000 megawatts in 2035, a figure that jumped to around 220,000 megawatts in this year’s forecast.
While summer is typically when grids are most taxed due to heavy demand from air conditioning, as more of daily life gets electrified — especially home heating — winter demand is forecast to rise, too. PJM forecast that its winter peak demand would go from 139,000 megawatts in 2025, or 88% of the summer peak, to 210,000 megawatts in 2039, or 95% of its summer peak demand forecast for that year.
Systems are designed to accommodate their peak, but winter poses special challenges for grids. Namely, the electric grid can freeze, with natural gas plants and pipelines posing a special risk in cold weather — not to mention that it’s typically not a great time for solar production, either.
Aftab Khan, PJM’s executive vice president for operations, planning, and security, said in a statement Thursday that much of the recent demand increase was due to data centers growing “exponentially” in PJM’s territory.
The disparity between future demand and foreseeable available supply in the short term has already led to a colossal increase in “capacity” payments within PJM, where generators are paid to guarantee they’ll be able to deliver power in a crunch. These payments tend to favor coal, natural gas, and nuclear power plants, which can produce power (hopefully) in all weather conditions whenever it’s needed, in a way that variable energy generation such as wind and solar — even when backed up by batteries — cannot as yet.
Prices at the latest capacity auction were high enough to induce Calpine, the independent power company that operates dozens of natural gas power plants and recently announced a merger with Constellation, the owner of the Three Mile Island nuclear plant, to say it would look at building new power plants in the territory.
The expected relentless increase in power demand, power capacity, and presumably, profits for power companies, was thrown into doubt, however, when the Chinese artificial intelligence company DeepSeek released a large language model that appears to require far less power than state of the art models developed by American companies such as OpenAI. While the biggest stock market victim has been the chip designer Nvidia, which has shed hundreds of billions of dollars of market capitalization this week, a number of power companies including Constellation and Vistra are down around 10%, after being some of the best stock market performers in 2024.
It’s not just AI companies taking a beating today.
It’s not just tech stocks that are reeling after the release of Chinese artificial intelligence company DeepSeek’s open-source R1 model, which performs similarly to state-of-the-art models from American companies while using less expensive hardware far more efficiently. Energy and infrastructure companies — whose share prices had soared in the past year on the promise of powering a massive artificial intelligence buildout — have also seen their stock prices fall early Monday.
Shares in GE Vernova, which manufactures turbines for gas-fired power plants, were down 19% in early trading Monday. Since the company’s spinoff from GE last April, the share price had risen almost 200% through last Friday, largely based on optimism about its ability to supply higher electricity demand. Oklo, the advanced nuclear company backed by OpenAI chief executive Sam Altman, is down 25%, after rising almost 300% in the past year. Constellation Energy, the independent power producer that’s re-powering Three Mile Island in partnership with Microsoft, saw its shares fall almost 20% in early trading. It had risen almost 190% in the year prior to Monday.
“DeepSeek’s power implications for AI training punctures some of the capex euphoria which followed major commitments from Stargate and Meta last week,” Jefferies infrastructure analyst Graham Hunt and his colleagues wrote in a note to clients Monday. “With DeepSeek delivering performance comparable to GPT-4 for a fraction of the computing power, there are potential negative implications for the builders, as pressure on AI players to justify ever increasing capex plans could ultimately lead to a lower trajectory for data center revenue and profit growth.”
Investors fear that the proliferation of cheaper, more efficient models may hurt the prospects of technology companies — and their suppliers — that are spending tens if not hundreds of billions of dollars on artificial intelligence investments.
Just last week, both Altman and Mark Zuckerberg, the founder and chief executive of Meta, announced huge new investments in artificial intelligence infrastructure.
Altman’s OpenAI is part of Stargate, the joint venture with Microsoft and SoftBank that got a splashy White House-based announcement and promises to invest $500 billion in artificial intelligence infrastructure. There was already some skepticism of these numbers, with Altman-nemesis Elon Musk charging that certain members would be unable to fulfill their ends of the deal, Microsoft Chief Executive Satya Nadella told CNBC from Davos, “I’m good for my $80 billion.”
Zuckerberg, meanwhile, said late last week that his company was building a data center “so large it would cover a significant part of Manhattan,” which would require 2 gigawatts of electricity to power. (For scale, reactors 3 and 4 of the Vogtle nuclear plant in Georgia are a little over 1 gigawatt each.) He also said that Meta had planned up to $65 billion of capital expenditure this year.
These escalating announcements have been manna to investors in any company that provides the building blocks for large artificial intelligence systems — namely chips and energy, with companies like Nvidia, the chip designer, and power companies and energy infrastructure companies posting some of the best stock market performances last year.
But exactly how cheaper artificial intelligence plays out in terms of real investment remains to be seen. Late Sunday night Redmond, Washington-time, Nadella posted a link on X to the Wikipedia page for Jevons Paradox. The idea dates from 19th century Britain, and posits that increased efficiency in using a resource (in Jevons’ case, coal) could actually accelerate its depletion, as the resource becomes cheaper for the same economic output, encouraging more use of it (in Jevons’ case, iron).
“Jevons paradox strikes again!,” Nadella wrote. “As AI gets more efficient and accessible, we will see its use skyrocket, turning it into a commodity we just can't get enough of.”
Investors in chips and energy companies are hoping that’s the case; at least so far, the market doesn’t appear to agree.